In a medium bowl, whisk together the flour, granulated sugar, cocoa, baking powder, and salt.
In a large bowl, use an electric hand mixer to beat the cream cheese and butter until smooth. Beat in the egg, food coloring and vanilla.
Add the dry ingredients to the creamed mixture and beat until the dough comes together. Cover with plastic wrap and chill the dough for at least 2 hours.
When ready to bake, preheat the oven to 350 degrees F. Line two baking sheets with parchment paper. Place the powdered sugar in a shallow bowl.
Roll the dough into balls (about 1 tablespoon each). Roll the dough balls in the powdered sugar, then place on the baking sheets at least 3 inches apart. Bake until the edges of the cookies are set, 10 to 12 minutes. Transfer the cookies to racks to cool completely. Store the cookies in an airtight container for up to 3 days.